1. Department of Defense Overview Director for Administration and Management Office of the Secretary of Defense 10 September 2007

2. 2 Outline The mission of the Department of Defense is to provide the military forces needed to deter war and to protect the security of our country. Official Mission Statement of the Department of Defense The Constitution and National Defense Key Statutory Authorities of the Secretary of Defense Evolution of the Department DoD Organizational Structure Corporate Governance, and Corporate Processes Policy Framework, Senior Leaders, and Key Advisory Boards Key Developments/Initiatives, and Institutional Challenges

3. 3 Article I – Congress Authorizes and appropriates Makes rules for governance; e.g.: –National Security Act of 1947, as amended –Goldwater-Nichols Reorganization Act of 1986 –Intel Reform and Terrorism Prevention Act of 2004 Declares war Advice and consent: –Principal appointees –Military officer promotions The Constitution and National Defense: Congress 3

4. 4 Article II – President Shall be the Commander in Chief of the Armed Forces of the United States Exercises authority over the military by: –Selecting Presidential appointees and senior officers, and approving military promotions –Managing the federal budget process –Formulating/implementing national security policy –Personal engagement in matters of high importance The Constitution and National Defense: The President 4

5. 5 Key Statutory Authorities of the Secretary of Defense Principal Advisor to the President on Defense matters “The Secretary of Defense is the principal assistant to the President in all matters relating to the Department of Defense.”* Cabinet member as the head of an executive department “The Department of Defense is an executive department of the United States.”* Leader and CEO of the Department “There is a Secretary of Defense, who is the head of the Department of Defense … [who] has authority, direction, and control over the Department of Defense.”* Deputy to the Commander in Chief “… the chain of command to a combatant command runs (1) from the President to the Secretary of Defense and (2) from the Secretary of Defense to the commander of the combatant command.”* * Title 10, United States Code

6. 6 Evolution of the Department: Recurring Themes in DoD Organization Centralization of authority in those officials responsible for integration of effort at the expense of previously independent Services Internal authority of the Secretary of Defense competing with external, Congressionally-imposed requirements Emerging role and increased authority of Chairman of the Joint Chiefs of Staff as Principal Military Advisor Increasing scope and missions of the Combatant Commands New technologies, threats, and operational experience as the impetus for organizational change Extending the concept of jointness from military operations to corporate governance, management, and processes Consolidating common-service functions in Defense Agencies/Field Activities and joint task assignments Improving business functions to achieve savings Continuing pressure to reduce bases and installations

7. 7 2001-2002 –Principal Deputy Under Secretary for Personnel & Readiness –Defense Technology Security Administration –Missile Defense Agency; DoD Counterintelligence Field Activity; Pentagon Force Protection Agency –US Northern Command; merged US Strategic Command and US Space Command and assigned missions to new US Strategic Command for: Global Strike, Missile Defense, C4ISR, and Information Operations –US Joint Forces Command of geographic responsibilities split between USEUCOM and USNORTHCOM 2003-2004 –Under Secretary for Intelligence; Asst Sec for NII/DoD CIO; Asst Sec for Homeland Defense –All combatant commands directed to maintain Standing Joint Task Force core element –Syria, Lebanon, Seychelles Archipelago aligned to US Central Command –US Special Operations Command to lead planning/synchronization global operations against terrorist networks –US Joint Forces Command to lead integration of multinational and interagency warfighting transformation efforts 2005-2007 –Business Transformation Agency –Congress approved 10 th Assistant Secretary (ASD for Asian & Pacific Security Affairs) –US Strategic Command directed to lead and synchronize DoD efforts to combat WMD –US Special Operations Command designated as Special Operations Joint Forces Provider –Established Joint Improvised Explosive Device Defeat Organization –Established US Africa Command Evolution of the Department: Selected DoD Component & Staff Element Changes since 2001

8. Unified Policy and Direction OSD CJCS JCS Joint Staff Secretary of Defense Deputy Secretary of Defense Supporters & Suppliers Defense Agencies & DoD Field Activities (28) Department of the Army Department of the Navy Department of the Air Force Operators: Combatant Commands FunctionalRegional NavyUSMC DoD Organizational Structure: The DoD Components IG, DoD Strategic Command Transpor- tation Command Special Operations Command Northern Command European Command Central Command Southern Command Pacific Command Joint Forces Command DoD Components: OSD1 JCS / Joint Staff 2 Defense Agencies 17 DoD Field Activities11 Military Departments3 COCOMs9 DoD IG 1 Total44 DoD Direct Reporting Officials: 28 DoD Workforce: Military: 1.3M Civilians: 700K Guard and Reserve:825K Africa Command

9. 9 Secretary of Defense Deputy Secretary of Defense ASD (Networks & Information Integration)/Chief Information Officer USD (Comptroller)/ Chief Financial Officer USD (Policy) Director, Operational Test & Evaluation USD (Acquisition, Technology & Logistics) USD (Personnel & Readiness)/ Chief Human Capital Officer ASD (Legislative Affairs) ASD (Public Affairs) DoD General Counsel Assistant to the Secretary of Defense (ATSD) (Intelligence Oversight)** Director, Net Assessment Director, Administration and Management Director, Program Analysis & Evaluation DoD Organizational Structure: OSD (with IG DoD) USD (Intelligence) Direct Reports OSD 14 IG* 1 Total 15 Authorized Personnel Civilians1674 Military444 Total2118 Inspector General * *Although the IG is statutorily part of OSD and is under the general supervision of the Secretary of Defense, the OIG functions as an independent and objective unit of the Department of Defense. ** On August 28, 2007, the Secretary of Defense decided to move the Intelligence Oversight function to the DoD OIG; this transfer effort us currently underway and will probably be effective as of October 1, 2007. Immediate Office of the Secretary

10. 10 Secretary of Defense Deputy Secretary of Defense USD (Policy) USD (Comptroller) USD (Personnel & Readiness) ASD (Networks & Information Integration) USD (Acquisition, Technology & Logistics) USD (Intelligence) Defense Security Cooperation Agency Defense Contract Audit Agency Defense Finance & Accounting Service Defense Commissary Agency Defense Advanced Research Projects Agency Defense Logistics Agency* Defense Intelligence Agency* Defense Security Service *Defense Contract Management Agency Defense Information Systems Agency* Director, Administration and Management Pentagon Force Protection Agency Defense Threat Reduction Agency* Missile Defense Agency Defense Legal Services Agency National Geospatial- Intelligence Agency* National Security Agency* DoD Organizational Structure: OSD PSA Oversight of Defense Agencies Defense Business Transformation Agency DoD General Counsel Defense Contract Management Agency* * Seven are designated as Combat Support Agencies with Joint oversight with the Chairman, Joint Chiefs of Staff ** Established as an operating agency of the Department of Defense National Reconnaissance Office** Defense Agencies: 17 (18)

11. 11 Secretary of Defense Deputy Secretary of Defense American Forces Information Service DoD Education Activity USD (Intelligence) Defense Prisoner of War/Missing Personnel Office Defense Technology Security Administration DoD Counter- intelligence Field Activity* Defense Technical Information Center DoD Organizational Structure: OSD PSA Oversight of DoD Field Activities Dir USD (Acquisition, Technology & Logistics) Office of Economic Adjustment DoD Test Resource Management Center Director, Administration and Management Washington Headquarters Services USD (Personnel & Readiness) TRICARE Management Activity DoD Human Resources Activity ASD (Public Affairs) * Select functions designated as combat support DoD Field Activities: 11 USD (Policy)

12. 12 Corporate Governance: Framework The Secretary and Deputy Secretary of Defense establish, direct, and oversee Departmental governance councils and decision-making processes Decision authority rests with the Secretary and Deputy Secretary of Defense –SecDef as CEO—strategic direction, policy, program and resource priorities –Deputy Secretary as COO/CMO directs and integrates DoD planning and resource allocation consistent with SD direction, and oversees management, business systems, and processes Defense Senior Leaders Conference (DSLC) –One of two most senior level advisory bodies to the Secretary; DoD Principals participate –Advises the Secretary on strategic issues; SLRG and COCOMs, usually 3x/year Senior Leader Review Group (SLRG) –Second of two most senior level advisory bodies to the Secretary –Senior civilian leadership team, as well as CJCS, VCJCS, and Service Chiefs Deputy’s Advisory Working Group (DAWG) –Most senior level advisory body to the Deputy Secretary; DoD Principal Deputies participate –Oversees and directs enterprise management and business issues Supporting Tier of Governance –Aligned with functional activities across the Department –Has representation in the SLRG and DAWG, and relies on civilian-military collaboration

13. 13 Supporting Tier of Governance Principal DAWG Members * Deputy Secretary of Defense, Chairman & Vice CJCS Under Secretaries of Defense or Deputy Military Department Secretaries or Deputy Service Chiefs or Deputy CDRUSSOCOM or Deputy Principal SLRG Members* Secretary of Defense, Chairman JCS Deputy Secretary of Defense, Vice Chairman JCS Under Secretaries of Defense Military Department Secretaries Service Chiefs COCOMs (2-3 times per year as DSLC) Principals plus Advised by DoD Principals, the Secretary as CEO: –Provides strategic direction –Reviews lower level decisions on an exception basis Deputies plus The Deputy Secretary as COO/CMO: –Oversees and directs enterprise management and business issues –Ensures integration of effort among DoD boards / councils –Ties together PPBE elements –Refers issues to SLRG as appropriate Corporate Governance: Linking Corporate and Supporting Tiers Deputy’s Advisory Working Group (DAWG) Senior Leader Review Group (SLRG) JCS: Joint Chiefs of Staff (Statutory) JIEDD: Joint Improvised Explosive Device Defeat Senior Resource Steering Group JROC: Joint Requirements Oversight Council (Statutory) MHSER: Military Health System Executive Review NSPS: National Security Personnel System NWC: Nuclear Weapons Council (Statutory) PSC: Policy and Strategy Committee RPIGB: Real Property and Installation Life Cycle Management Governance Board SAPOC: Special Access Program Oversight Committee SROC: Senior Readiness Oversight Council *SLRG and DAWG normally includes a number of additional principal staff advisors DAB: Defense Acquisition Board DBSMC: Defense Business Systems Management Committee (Statutory) DHRB: Defense Human Resources Board DLB: Defense Logistics Board DoD CIOEB: DoD Chief Information Officer’s Executive Board DSLC: Defense Senior Leaders Conference FMLC: Financial Management Leadership Council GFMB: Global Force Management Board IO&SEC: Information Operations and Space Executive Committee ISRIC: Intelligence, Surveillance, and Reconnaissance Integration Council (Statutory) ITAB: Information Technology Acquisitions Board

14. 14 Corporate Processes: Framework The Department has several DoD-level management processes for strategic and operational planning, capabilities development, and acquisition; for example: Planning, Programming, Budgeting, and Execution (PPBE) is the Department’s primary resource management process –Links corporate strategic direction with lower level planning and execution –Incorporates outputs from secondary processes from across the Department PPBE is the engine that moves DoD decision-making along Executive Branch budgeting and Congressional appropriations cycles Fiscal Years (FYs) 2008 and 2009 will be the last budgets submitted to Congress by this Administration; FY 2010 and beyond will be amended by next Administration QDR – Quadrennial Defense Review SPG – Strategic Planning Guidance JPG – Joint Programming Guidance

15. 15 Corporate Processes: Key PPBE Timelines & QDR-Related Events QDR “Implementation” PhaseBegin Transition to...QDR ’10 (Review Phase) QDR 2005 “Review” Phase Planning 1 st Report due Feb ‘07 QDR Quarterly Reports to Congress Programming Budgeting Execution QDR Report Published Feb’06 Strategic Planning Guidance FY2010-2015 Strategic Planning Guidance FY2008-2013 End FY08 FY08 Posture Hearings FY08-13 Program Review FY09-13 Program Review FY10-15 Program Review FY07-11 QDR Program Review FY07 Posture Hearings PB08 to Congress Feb’07 FY10 Budget Review PB09 to Congress Feb’08 PB07 to Congress Feb’06 FY08 Budget Review FY09 Budget Review FY07 QDR Budget Review FY08-13 Joint Programming Guidance(s) FY09-13 Joint Programming Guidance(s) FY10-15 Joint Programming Guidance(s) 2008 Election Today Oct Jul Apr 2006 Jan AprOctJulOct 2007 Jan 2008 Jan

16. 16 Policy Framework: DoD Directives System Establishes and maintains DoD policy framework –Codifies incumbent Secretary/Administration policies –Provides an authoritative baseline for change Includes ~1364 DoD Issuances (Directives, Instructions, and Publications) –503 are Directives signed by the Secretary/Deputy Secretary –Current policy is to reduce number of Directives by delegating authority to OSD PSA direct reports to issue functional policy guidance Communicates the Secretary’s guidance –Delegations of authority and assignments of responsibility –Policy direction on specific matters –Prescribes relationships of and between OSD PSAs/DoD Comp Heads Provides the correlation between statutes and wiring diagrams –Statutes require interpretation and implementation –Wiring diagrams do not convey subject matter/relationships

17. 17 Senior Leaders and Managers  Political Appointees –Presidentially Appointed, Senate-confirmed (PAS) Officials; o48 PAS officials are senior level, corporate policy makers –Non-career Senior Executive Service (SES) o~90 Non-Career SES—principally in OSD and MilDep Hq Staffs  Career SES –Career Reserved whose purpose is to ensure impartiality of the Government –General positions (most OSD positions are General SES) –~1120 Career SES (344 in OSD)  General Officers/Flag Officers (GO/FOs) –~905 GO/FOs –83% assigned to Military Departments –13% to Joint Staff/COCOMs –Remainder: Defense Agencies, DoD Field Activities, and other organizations

18. 18 Key Advisory Boards to the Secretary There are 50 DoD Federal Advisory Committees –22 active non-discretionary and 28 active discretionary –Total members: approximately 1,000 Three senior advisory boards directly support the Secretary of Defense: –Defense Policy BoardUSD(P) leadMembers: 25 –Defense Science BoardUSD(AT&L) leadMembers: 35 –Defense Business BoardDepSec leadMembers: 18 Department advisory boards are independent entities, not subject to the direction or control of the Department. They are a source of significant expertise not otherwise available to the Department.

19. 19 Key Developments/Initiatives (Organization & Management) DoD Transformation Priorities (“DoD Top 25”) –Prevail in GWOT –Strengthen Joint Warfighting Capabilities –Focus on People –Transform Enterprise Management Key Management and Process Milestones Quadrennial Defense Review (QDR) Implementation Chief Management Officer (CMO) Wounded Warrior Matters

20. 20 Key Developments/Initiatives (Organization & Management), Cont’d Biennial Review of Defense Agencies and DoD Field Activities Update Directive on DoD Executive Agent for Space Study to Assign DoD Law Enforcement Policy to an OSD PSA Annual Statement of Assurance (Sep 2007) DoDD 3000.06, “Combat Support Agencies” (Jul 2007) USD(I) Serving as Director of Defense Intel/ODNI (May 2007) Pentagon Occupancy and Space Allocation Study (Nov 2006) OUSD(Policy) Reorganization (Sep 2006)

21. 21 Institutional Challenges: High-Visibility Congressional Reports, Next 15 Months 10 th ASD Report on OUSD(P) Re-organization (§901) First Annual Report on Intelligence Oversight (§932) Oct 2008 Jan AprJul 2007 Jan Apr Feasibility of Creating a Combatant Command for Africa (§1033) Integrating Operations in Support of Stability (§1035) Commission on National Guard and Reserve (§528-529) Operationally Responsive Space Office (§913) Due 14 Feb 07 120 days after 17 Oct 06 Review and Assessment of DoD Organization and Management for National Security in Space (§914) DoD Biometrics Programs (H.Rept. 109-676) * Due 17 Oct 07 First QDR Quarterly Report (§1032) QDR Initial Report Final Report Source:National Defense Authorization Act for Fiscal Year 2007 * Conference Report, Department of Defense Appropriations Act, 2007

22. 22 Institutional Challenges: Organization and Management Continuing shift in balance away from Military Departments and towards COCOMs as sources of capability requirements Improving the Secretary’s ability to track, assess, and evaluate organizational performance in relation to DoD’s strategic objectives Fully integrating new missile defense mission within the Unified Command system Finding DoD’s underlying budget baseline in the midst of multiple wartime supplemental budgets Finding correct balance between SecDef and DNI authorities and responsibilities for intelligence Further defining the scope and level of DoD responsibilities in Homeland Defense/Security Improving the capabilities and effectiveness of other departments and agencies in the interagency process and in complex contingency operations

23. 23 Core Take-Aways Policy Framework: Understand the DoD Directives System. “Foundation of the Department.” Organization and Structure: Understand your organization’s status relative to the other DoD Components. “Building blocks of the Department.” Customers: Know/understand your organizational customers. “Internal and external customer satisfaction is key.” Cooperation and Collaboration: Building partnerships across organizational boundaries is crucial. “The common defense is strengthened with aligned efforts.”

24. 24 Recommended Reading or Reference Documents The Department of Defense, 1947-1997: Organization and Leaders, Historical Office, OSD Department of Defense Key Officials, 1947-2004, Historical Office, OSD Assignment Pentagon: The Insiders Guide to the Potomac Puzzle Palace by MajGen P.M. Smith, USAF(Ret) QDR Report, February 6, 2006 (The strategic plan for the Department) QDR web site on SIPRNET: https://esnet.itiss.osd.smil.mil/ats

25. 25 Quotes on Organization “The secret of all victory lies in the organization of the non- obvious.” Emperor Marcus Aurelius “The achievements of an organization are the results of the combined effort of each individual.” Vince Lombardi “Once an organization loses its spirit of pioneering and rests on its early work, its progress stops.” Thomas J Watson